Depreciation claim rejected as purchase of machinery found to be false: Madras HC

HM Brothers (P) Ltd. Vs DCIT (Madras High Court)

Madras High Court held that once the purchase of machinery itself was found to be false and the transaction was sham, the claim of depreciation cannot be sustained. Appeal dismissed, accordingly.

Facts- The appellant / assessee was trading in ball bearings. AO completed the assessment under Section 144 of the Act and the assessment order was passed on 19.03.1999, disallowing the depreciation claim on machinery.

The assessee preferred an appeal before the CIT (Appeals) and by order dated 18.07.2000, the

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